EMC beats consensus loss estimate of 5 cents !
EMC Swings to Loss; Revenues Fall
Apr 18 7:29am ET
HOPKINTON, Mass. (Reuters) - EMC Corp. , the world's largest maker of data-storage systems, on Thursday reported its third consecutive quarterly loss as revenue fell 14 percent because of stiffer competition and less corporate spending on machines that store computer network traffic.
EMC posted a net loss of $77 million, or 3 cents a share, compared with a year-ago profit of $398.8 million, or 18 cents a share.
Analysts were looking for EMC to lose 2 cents to 6 cents per share, with a consensus loss estimate of 5 cents, according to Thomson Financial/First Call.
EMC's net loss included a $28 million after-tax benefit because of a reversal on a restructuring charge taken in last year's third quarter.
Total revenue fell to $1.3 billion, compared with $2.34 billion in the year-ago period. That was below EMC's "at best" forecast of about $1.43 billion, or 5 percent off fourth-quarter revenue.
EMC said it continues to aggressively cut costs as it works to bring expenses in line with falling revenue. EMC said it has lowered its quarterly break-even level by more than $200 million over the past nine months.
EMC shares closed down 52 cents, or 4.76 percent, to $10.40 Wednesday on the New York Stock Exchange. The stock is off 23 percent this year, underperforming the 2 percent decline on the Standard & Poor's 500 Index. |
